The California Employment Development Department (EDD) is suspending new applications for unemployment benefits to address its existing backlog problems and to reduce fraud.
The decision comes after the newly-formed Strike Team released its report, which included recommendations to solve the problems confronting the agency.
In July, Governor Gavin Newsom established the Strike Team to help improve the systems of the California EDD amid mounting complaints from jobless Californians waiting to receive their benefits.
Since the start of the COVID-19 pandemic, millions of Californians lost their jobs. The California EDD struggled to process the influx of unemployment applications because it has an antiquated system, which created an unacceptable backlog.
In addition, scammers took advantage of the situation by submitting fraudulent unemployment claims to the agency. California law enforcement authorities recently busted a large-scale unemployment fraud ring, which operated out of the San Mateo County Maguire Correctional Jail. They also recently arrested 44 people involved in submitting fraudulent unemployment claims using stolen identities.
